SuccessFactors posts first-ever quarterly profit

NathanBecker

SuccessFactors Inc.
SFSF
posted its first quarterly profit ever in the first quarter as it benefited from a significant jump in revenue.

The company also on Tuesday said it will acquire learning-management software company Plateau Systems Ltd. for $145 million in cash and $145 million more in stock.

Still, shares dropped 8.1%, to $37 after hours. As of the close, the stock had risen 39% so far this year.

SuccessFactors also forecast a breakeven bottom line for the current quarter and revenue of $69 million to $70 million. Analysts surveyed by Thomson Reuters expected breakeven on $66 million.

The company also raised its current-year forecast to revenue of $275 million to $280 million. In February, the company had projected $265 million to $275 million in revenue.

The employee-evaluation software firm before the most recent quarter hadn't had a profitable quarter, as its practice of booking revenue over the life of a contract while booking expenses immediately means profit took time to build momentum.

SuccessFactors reported a profit of $2.7 million, or 3 cents a share, from a year-earlier loss of $3.7 million, or 5 cents. Excluding items such as stock-based compensation, the company posted a 1-cent profit.

Revenue jumped 51%, to $67.6 million.

Analysts polled by Thomson Reuters had most recently forecast a breakeven bottom line on $63 million in revenue.

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